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Smart Participation Contract Matrix for Islamic Banks: An Institutional Theory Perspective

Rabeea F. Khan & Noor Ul Amin

Journal of Islamic Business & Management2025https://doi.org/10.26501/jibm/2025.1501-002article
AJG 1
Weight
0.50

What the paper says

This study aims to explore how smart contract (SC) technology can be integrated into the Islamic Banking (IB) system to improve its overall functionality, particularly in terms of operational efficiency and adherence to Sharīʿah principles. Method: This paper has used design science research method in order to produce an artifact of Islamic smart contract. Results: The study argues that traditional paper-based Islamic participation contracts (Mushārakah) can be digitized into blockchain-based smart contracts for greater efficiency. The matrix synthesizes elements of Islamic contracts and blockchain technology into sixteen constructs, combining the principles of Islamic banking (parties, offer and acceptance, subject matter, and profit/loss sharing) with those of blockchain technology (transparency, immutability, security, and consensus). This integration offers new insights into building core banking structures on blockchain and Islamic banking principles to enhance efficiency, financial inclusion, and institutional legitimacy. Key findings indicate that Islamic smart contracts (ISC) save costs and time while improving efficiency and financial inclusion. However, challenges include Sharīʿah compliance, technological complexity, regulatory fragmentation, and scalability issues.

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https://doi.org/https://doi.org/10.26501/jibm/2025.1501-002

Or copy a formatted citation

@article{rabeea2025,
  title        = {{Smart Participation Contract Matrix for Islamic Banks: An Institutional Theory Perspective}},
  author       = {Rabeea F. Khan & Noor Ul Amin},
  journal      = {Journal of Islamic Business & Management},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.26501/jibm/2025.1501-002},
}

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Smart Participation Contract Matrix for Islamic Banks: An Institutional Theory Perspective

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.